Trio of tenants head to PIC West

Three companies are slated to build new facilities and begin operations next year in the industrial park, located near the Springfield-Branson National Airport.

Springfield-based Crosstech Construction Products and Kansas-based Green Seed Co. have closed on land purchases, 6.2 acres and 5 acres respectively. Southern California-based Seltzer Cos. Inc. has agreed within recent weeks to purchase 7.2 acres, though that real estate transaction is pending due diligence, according to sources close to the deal.

The three companies’ plans total at least $3 million in infrastructure investment and nearly 75 new jobs at PIC West.

Negotiations are under way with another five undisclosed companies, according to Troy Compton, president of the PIC West Administrative Council, the group that approves land sales within the park.

All this activity is occurring after the park only added four companies – Stamina Products, Executive Coach Builders, Cabinets By RKC and Gold Mechanical – during its first six years.

“We’re starting now to see some real strong deal flow in PIC West,” said PIC West point man Greg Williams, senior vice president of economic development for Springfield Area Chamber of Commerce. He handles most recruitment and negotiations for PIC West, along with Dean Thompson, director of economic development for City Utilities.

Compton expects the activity at PIC West to remain high, and he said the park will have a sizable impact on the economy.

The original PIC, located off East Kearney, completed its 13-year build-out in 2006 with 21 companies. PIC has generated about $200 million in private investment, according to its administrative council.

PIC West, with 408 acres, is slightly larger than the first PIC, which comprises 360 acres, and Williams expects PIC West to eventually hold more than 20 companies.

Seltzer Cos.

Seltzer’s status as a PIC West tenant is more tentative than the plans for Green Seed Co. and Crosstech Construction Products.

However, Seltzer could have more impact, because it’s a new company to Springfield, whereas the other two already have been operating locally.

Tyler Seltzer, vice president of corporate development for Seltzer, confirmed the tentative agreement to purchase partial Lot 16 but declined further comment until the sale closes.

Mark Kerivan of Murney Associates, who is representing Seltzer in the real estate transaction, said he expected the deal to close within the next three months. The chamber’s Williams expects Seltzer to begin operations in PIC West by mid-2008.

Assuming nothing falls through, Seltzer will be “an excellent addition to the park,” added Compton, citing the company’s financial strength and product mix.

Compton said Seltzer – a subsidiary of Ireland-based publicly traded Glanbia PLC – would likely operate in Springfield as Seltzer Nutritional Technologies and employ 50 to 60 people in a highly automated facility. In 2006, Glanbia reported Seltzer’s 2005 revenues at $52.6 million.

Williams said Seltzer would manufacture wholesale nutritional supplements in spray and liquid form and operate in a 75,000-square-foot facility, which would be built by Morelock-Ross Builders Inc.

Williams confirmed that Seltzer had been exploring other cities for expansion, but chose Springfield because of its central location, low real estate costs, low cost of conducting business and available industrial park land. Williams declined to comment on what other cities Seltzer considered.

Williams also wouldn’t say how much Seltzer agreed to pay for PIC West land until the deal closed. He said the asking price was $35,000 an acre.

“I wish it came down to the fact that we sold them on Springfield because we’re such wonderful people to work with, but it’s all about costs,” said Williams, adding that PIC West was attractive to Seltzer because much of the zoning and permitting work, along with roads and utilities, were already in place.

Green Seed Co.

The established infrastructure and lack of regulatory hoops at PIC West also appealed to Terry Altic, division manager of Green Seed Co.

“They had all the headaches out of the way,” Altic said, adding that chamber and CU economic development officials were easy to work with.

Green Seed, owned by St. Paul, Kan.-based Beachner Seed Co., has operated in Springfield for more than 50 years, Altic said. Green Seed packages and sells wholesale garden seeds, trading in a 275-mile radius of Springfield.

The move from its current 35,000-square-foot facility at 309 N. Main Ave. is necessary because the city wants to acquire the land to develop Jordan Valley Park’s West Meadows, Altic said.

The move will allow Green Seed to expand its operations. It will build a 50,000-square-foot facility, increase its trade area to a 350-mile radius and increase its staff to 20 from 14, Altic said.

He also said a general contractor hasn’t been hired yet for the estimated $2 million project, but he hopes to begin operating in PIC West next year. The relocation is pending the city’s purchase of the Main Avenue land from Burlington Northern Santa Fe Railroad.

Crosstech Construction Products

Land broke in early September for Crosstech Construction Products’ 30,000-square-foot facility in PIC West. Majority owner Kevin Cross expects construction to finish by the end of the year. Williams Construction Inc. is the general contractor on the $1.35 million project.

When complete, Springfield-based Crosstech will relocate from a 15,000-square-foot building that it leases at 1051 E. Lynn St.

Crosstech manufactures components for stucco and exterior insulated foam system, or EIFS, walls, primarily for commercial use. Crosstech’s products include acrylic finish for stucco and coating for EIFS.

Crosstech, established in 2000, will expand production of its Architectural Details line, which features products such as columns and moldings on building façades. Cross plans to expand his staff from 17 to about 25.

New PIC West Tenants

Crosstech Construction Products

Product: Components for stucco and EIFS (Exterior Insulated Foam System)

Owner: Kevin Cross, majority owner

Headquarters: Springfield

Facility type: Relocation

Estimated construction cost: $1.35 million

Size: 30,000 square feet, 5 acres

New jobs created: 8

Green Seed Co.

Product: Wholesale garden seeds

Owner: Beachner Seed Co.

Headquarters: Springfield (division), St. Paul, Kan. (parent company)

Facility type: Relocation

Estimated construction cost: $2 million

Size: 50,000 square feet, 6.2 acres

New jobs created: 6

Seltzer Cos. (pending)

Product: Wholesale nutritional supplements in spray and liquid form

Owner: Glanbia PLC

Headquarters: Carlsbad, Calif. (division), Kilkenny, Ireland (parent company)

Facility type: Expansion

Estimated construction cost: N/A

Size: 75,000 square feet, 7.2 acres

New jobs created: 50 to 60